The Empirical Study Of The Corporate Internal Governance Structure Impact On Credit Risk

The YinGuangxia event in2001, the myth of Kelon in2006, the SanLu milk in2008and the frequency of food safety issues come out recently, these problems describe that the enterprise credit risk is an indisputable fact in our China. Then, how can we solve these credit risk problems in our capital markets, protect the interests of stakeholders? The primary task is diagnosis the enterprise’s credit, explore the potential factors that may put impact on credit risk is particularly important. Of course, there are many factors that would affect the enterprise’s credit risk, such as macro-economic situation, the company’s performance, and agents’risk attitudes. In this paper, we will study the internal governance structure of company impacts on the credit risk.The organism composed by the company shareholders, board of directors, board of supervisors and other senior management called the internal governance structure, specifically, it contained equity structure, executives and agents. This paper based on the scholars’ study on enterprise credit risk, we will do some theory analysis from the corporate internal governance structure impact on the credit risk, and then promote some assumptions, and select341listed companies in our China in the year of2007to2009as the sample test. Firstly, we will use the logistic analysis method to get an assessment model of credit risk, then by the descriptive statistic analysis, correlation analysis and regression analysis for empirical test. Eventually, the results indicates that:the assumptions of the first large shareholders holding ratio, equity concentration and state corporate holding ratio can be confirmed, however, we can’t find obvious evidence to affirm assumptions of the equity balance, national holding ratio and non-state corporate holding ratio. Proportion of independent director and supervisors in the executive structure associated with credit risk’s negative assumption could not be verified; assumptions of whether the chairman of the board and general manager should be appointment by the same person and executive stock ownership can be proved in our capital market. The relationships of executive paying and management expense ratio with credit risk can be found on the capital markets in China.The innovation of this paper is that different form many domestic and foreign scholars are keen to study on the measurement of credit risk, this study broke the "measure heat", we will make exploring on the corporate internal governance structure effect of the credit risk, on the basis of theoretical analysis and empirical research. This study could provide the basis for the construction of credit system of listed company in China and provide suggestions reference for more systematic views on credit risk, meanwhile, to those who need reliable information is of great reference value, such as investors, creditors, and regulatory agencies. Besides, the study results could timely help to find and avoid credit risk.